BS"D

Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

We eke out a nice early morning 10:00 Reversal (light blue
Time Zone line) trade on Tuesday, but the rest of the day
was ulcers and traps. Our day session closed Doji,
breathing/gasping atop the LT Trend Channel (Daily, bottom
chart, green channel lines).

Sag coming on Wednesday?

Enjoy and be well,

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Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini ES H3
Tuesday 21 May 2013

Morning session opens at the Pivot/Close, and bounces jaggedly up to the R1 Resistance.

1 = It's 10:00 Reversal Time and the tape presents a lovely 2-bar off the R1.

A = Massive Volume (pink arrow) blasts a giant red candle south, pulling us in. (Entered early
to gain the full Price Window to the Pivot.) At the close of the candle, advance stop to Free
Trade and a couple of tiks. Might want to make that a mental stop in case the Pivot Support
holds.

B = Super DVS (pink arrow, Twin Towers?) blasts a giant red candle through the Pivot and Close,
vaguely exiting the green fog Ambush Zone. Nice!

Per our stop rules, move the profit-locking stop above the Close.

C = The 123 test of the Close tells us to prepare to add contracts, which we do as the next
giant red candle exits the fog. Position is now in Maximum Profit Giveback (MPG) violation.
Mental stop at Giveback Level.

After dipping to the low of the bottom wick, the following large white candle (Spinning Top)
retraces >2 points, signaling an Exit Now! We got positive slippage on the exit for
+/- 6 points

Price Action hangs, dipping briefly to tap on the S1, hangs some more, and ultimately returns
to retest the Close.

2 = DVS (pink arrow) drives the completion candle of this 123 through the Close and Pivot.
We enter aggressively, with the stop advanced under the Pivot.

D = Noting (a bit late) that this may be a DVS exhaustion preceding lunchtime, we fear being
taken out at our stop for a loss when Price Action returns to retest the Pivot (red arrow).

Our stop is missed, and Price Action kicks off with a small red Bull Dragonfly 123 (blue arrow).

Though we added contracts (due to blue and red arrows), we are never sure if the troops will
rally into the hole punched by a sumo Marubozu, so we move the stop to Free Trade.

E = Make that Free Trade and a tik on this smallish white candle.

F = It took a couple of DVS spurts (pink arrows) to put our position in MPG violation. With
no real excuse to tighten our stop, our MPG rules say to exit. We do so briskly. +/- 2 points

Price Action sags, and then, on a sudden burst of Volume, Price Action crosses above the R1 to
where it resumes lunchtime sideways drift.

Around 3:00 Price Action oozes back through the R1, just in time for EOD Hiccup (plum line) to
dive back to the Pivot for a Doji day closing. Note that although there is no actual spike to
form the classic "V" check mark pattern, the single white bull candle had a similar effect.

PERSPECTIVE
(Daily, bottom chart)

Tuesday taped another tiny white inverted (Bear)
Dragonfly Doji breather day candle. Looks like
a retest of the LT Trend Channel Ceiling (green
channel lines) is in order for Wednesday.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: